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Piracy Whistleblowers Paid $57K In 2010

alphadogg writes "In 2010, the Software and Information Industry Association received 157 reports of alleged corporate end user software piracy. Of the 157 reports, 42 (or 27%) were judged sufficiently reliable to pursue. Of these, 16 qualified for rewards totaling $57,500. The profile of sources reporting software piracy indicates that most reports come from former IT staff – these are the people who typically witness the illegal use of software. 75% of all reports come from IT staff or managers, 11% from the company's senior management and 4% from outside consultants. More than 59% of those reporting are no longer employed by the target company. In fact, many of SIIA's sources report that their primary reason for leaving the target company was the company's lack of ethical behavior related to software compliance."

25 of 141 comments (clear)

  1. FTW! by iserlohn · · Score: 3, Funny

    In fact, many of SIIA's sources report that their primary reason for leaving the target company was the company's lack of ethical behavior related to software compliance.

    It's a shock what people lose sleep over in this day and age.

    1. Re:FTW! by Yvanhoe · · Score: 4, Insightful

      When you are in a company that forces you to write DRMs, but that shamelessly pirate other softwares or integrate GPL code without mentioning it, I can see why employees would report them.

      --
      The Wise adapts himself to the world. The Fool adapts the world to himself. Therefore, all progress depends on the Fool.
    2. Re:FTW! by Anonymous Coward · · Score: 3, Interesting

      Yes.

      Companies that engage in the unethical behavior, or encourage their employees to be complicit without concern shouldn't be surprised when that behavior is taken against employees results in revenge via the money factor.

      Of all the companies I've worked for, the largest ones kept a relative control on software piracy, however not everyone engages in ethical actions.

      For example a call center outsourcer, the management tried to steal software written by an employee, and when the employee refused, he quit and threatened to sue them. The thing is I had the source code to it, and the company then tried to pull that on me, but then one day they decided to delete it, and all code, pieces and to know who has copies of it.

      In the case with (largest auction company) I wrote something from scratch, and they didn't try to seize the software at all. Quite the opposite, I was let go without anyone asking for the source code. So my guess is that the software was abandoned. The company does admit to taking ownership of other employees (those not working in a coding responsibility) software, and the employment contact grants license to anything invented while employed.

      Both companies made extensive use of Citrix servers and virtually unlimited copies of MS Office, Seibel (as CRM,) and in-house written tools (some by actual programmers, and some by customer support reps.)

      But I can tell you with absolute certainty that past a certain point, large companies don't keep track of individual licenses, they just buy bulk site licenses (not physical copies) and some IT staff ignore the license (much like everyone ignores license agreements) and are only aware of software that they can audit. This results devices like laptops not being accounted, and when staff are fired/quit they don't "return the license." So in some cases the IT staff actually are over-purchasing licenses for software just so they don't have to deal with the BSA.

    3. Re:FTW! by jimicus · · Score: 2

      But I can tell you with absolute certainty that past a certain point, large companies don't keep track of individual licenses, they just buy bulk site licenses (not physical copies) and some IT staff ignore the license (much like everyone ignores license agreements) and are only aware of software that they can audit. This results devices like laptops not being accounted, and when staff are fired/quit they don't "return the license." So in some cases the IT staff actually are over-purchasing licenses for software just so they don't have to deal with the BSA.

      I'll tell you why that is, because I was tasked with keeping my former employer up to snuff with their licensing.

      It is virtually impossible to get everything perfect. You'd think it was simple - if it's a commercial piece of software, one license per user.

      Nope.

      Let's start with Windows. We'll assume that your company has been making do with fairly elderly PCs for some time, but has since come into money and is taking the opportunity to replace every PC with new hardware running Windows 7. And, in order to make management easier and guarantee every PC is running the same build, as soon as they arrive you're going to reimage the whole lot with your own image with most of the software you need preinstalled.

      Not with OEM Windows licenses you're not. The only person who's allowed to roll out Windows using an imaging-based system and an OEM Windows license is the OEM, not the customer. You have to pay Microsoft for an enterprise Windows license. But that enterprise license is an upgrade-only license - it's not OK to call your OEM and say "Can we have these PCs without Windows, because we've already got a licenses?", you still need to buy PCs with Windows.

      OK, your company has come into some money. But you still don't have an unlimited budget, and buying a site-wide enterprise license for Windows is really going to bite. Then you remember there was some talk of moving some people with very limited requirements over to Linux. "Ah!" you think. "This could be just the thing - we can reduce the number of Windows licenses we need and that way we'll come in within budget". Well, you think that until you read the terms of the Microsoft enterprise license. "For licensing purposes, count the total number of PCs you own, and the number of Macs on which you will run the software." Note it doesn't say "Number of PCs on which you will run the software". Now, I'm no lawyer, but that sounds to me an awful lot like you can't simply say "We're running Linux on these 50 desktops, so we're not counting them." I have no idea how well such an argument would stand up if you were in court, but I do know that in my country, most of the consumer-protection laws which would frown on asking a consumer to agree to such terms don't apply to agreements between businesses. And most companies are extremely reluctant to become the first test case.

      Now that's just Windows. Office is just as awkward (license it for every PC on an annual basis, it costs about a third of the normal license cost - okay, you have to pay every year but it means you have to find a third of the money you'd otherwise have to find. Say "We don't need everyone to have Office, we'll omit licensing it for these users" and suddenly you don't qualify for the annual licensing. So unless you can omit licensing it for a significant number of people, it actually works out dearer). I haven't even started to discuss licensing for Adobe's commercial products, which are different again.

  2. good by mrphoton · · Score: 4, Informative

    pirated software also hurts open source take up too.

    1. Re:good by Anonymous Coward · · Score: 2, Insightful

      Unlikely. It's just a cheaper path to the only solution they can employ. FOSS wasn't even on their radar.

    2. Re:good by Vapula · · Score: 3, Insightful

      Some people would NEVER think about some commercial software if they couldn't pirate them...

      Think about these many kids toying with programs like 3DStudio, Adobe Photoshop, ... Their budget is near to zero but they are learning to use these tools using pirated versions... The alternative is they playing with Gimp, Blender3D, ... Which would lead to more people interrested in these softwares which would greatly benefit to the FOSS.

      The kids of today are the grownups of tomorrow...

  3. $3,593.75 average by Anonymous Coward · · Score: 4, Insightful

    More than 59% of those reporting are no longer employed by the target company.

    Yep, and I wonder how many are unemployable?

    Or, how many can actually get another job?

    Two things you never want to be associated with:

    1. Thief.
    2. Whistleblower.

    $3,593.75 isn't worth it for me. If there were piracy going on where I worked and management was part of it, I'd keep my mouth shut and leave.

    No company wants someone who's going to go reporting on illegal activity - none. They may say they do, but in reality, they don't.

    Everyone, let alone entire companies, has something to hide. You may not know it, but you do - there's just too many laws, IP, regulations and whatnot to run afoul.

    1. Re:$3,593.75 average by thijsh · · Score: 4, Insightful

      1. A thief is a person who removes something of value for his own personal gain (either to use or sell for money).
      2. A whistleblower is a person who highlights inethical practices of otherwise unchecked entities without personal gain.
      3. A snitch on the other hand sells out his peers for a small reward, which is exactly what is happening here...

      Like you said everyone has something to hide and you should respect their privacy by letting them. This should only be violated for highly unethical practices that greatly affect people's lives, like whistleblowers do... These people are heroes who think of the greater good before thinking of themselves, they may be in low esteem from corporations but they are heroes to the common man. Snitches on the other hand are the scum of the earth who violate peoples privacy for mundane things like software piracy and get paid for it too... everyone rightfully hates a snitch because their actions are more unethical than the supposedly unethical things they snitch on. A whistleblower understands this equation of ethics and is on the right side of ethical behavior, a snitch only thinks of personal needs and grievances and does not take ethics into account until after the fact when it might be a good argument to hide their motives...

    2. Re:$3,593.75 average by PopeRatzo · · Score: 3, Insightful

      Two things you never want to be associated with:

      1. Thief.
      2. Whistleblower.

      If your boss is using some software without proper license, it's just not worth it to be a snitch.

      On the other hand, if your boss is dumping toxic chemicals into the water supply, is torturing people, or lying about weapons of mass destruction in order to start a war, it's definitely worth it to be a whistleblower.

      --
      You are welcome on my lawn.
  4. Not very effective. by gstrickler · · Score: 3, Insightful
    From TFA,

    "In 2010, SIIA sent approximately 1400 demand letters, collected close $40,000 in restitution."

    That's under $30/letter on average. From the SIIA website:

    "Those who report piracy taking place within an organization to SIIA may be eligible for a reward of up to $1 million."

    From TFA:

    "In 2010, the Software and Information Industry Association received 157 reports of alleged corporate end user software piracy. Of the 157 reports, 42 (or 27%) were judged sufficiently reliable to pursue. Of these 16 qualified for rewards totaling $57,500."

    $57k for 16 cases is a far cry from "Up to $1M". Could it be that they're being deceptive/misleading?

    --
    make imaginary.friends COUNT=100 VISIBLE=false
    1. Re:Not very effective. by gstrickler · · Score: 2

      RTFA, those are two different categories of collections. $40k is from 1400 demand letters, not from the 42 of 157 reports that they pursued. According to TFA, they collected $200k from one client alone, and they don't say how much they collected in total.

      --
      make imaginary.friends COUNT=100 VISIBLE=false
  5. $3500 to get black listed by ever IT corp. by upuv · · Score: 4, Insightful

    OK So these people may feel morally better. They probably are.

    But when asked the question during an interview. "Why did you leave you last organization?" Answer "Oh I turned them in for a few thousand dollars."

    That is a career limiting move.

    Yah it's wrong but it's true.

    Then there is the industry. Only coughing up $57,000 grand total. That's not even an IT persons full time salary for a year. The reward or even stigma of the reward is doing more damage to personal lives than the good of correcting the poor behavior of companies. I'm sure MS has paid more for a poster about piracy than it paid out to people doing the right thing.

    It just makes me shake my head.

    1. Re:$3500 to get black listed by ever IT corp. by Threni · · Score: 2, Insightful

      > "Why did you leave you last organization?"

      "As a professional software developer, I wasn't prepared to stand by and watch other professional software developers suffer as a result of crimes carried out by my previous employer, nor did I want to participate in the aiding and abetting of criminals just because they're paying me.

      Stigma? Please! Only a company which commits illegal acts would have a problem with this.

    2. Re:$3500 to get black listed by ever IT corp. by IchBinEinPenguin · · Score: 2

      Stigma? Please! Only a company which commits illegal acts would have a problem with this.

      So.. How do you like working for Santa Inc.?
      commits illegal acts is pretty much page unavoidable these days given the number of laws.

      http://www.amazon.com/Three-Felonies-Day-Target-Innocent/dp/1594032556/ref=cm_cr_pr_product_top/177-5432351-7342110

    3. Re:$3500 to get black listed by ever IT corp. by TheRaven64 · · Score: 3, Insightful

      Only a company which commits illegal acts would have a problem with this

      Every company commits illegal acts. The nature of our legal system is that it's impossible to go through a normal day without breaking a few dozen laws. This is especially true of copyright infringement. Are you 100% certain that every piece of software in your company is licensed? No one has kept WinZIP installed past the shareware period? No one has copied a program from another machine without checking the licensing? The Windows installs are all on the corporate license key and not OEM versions?

      --
      I am TheRaven on Soylent News
    4. Re:$3500 to get black listed by ever IT corp. by Charliemopps · · Score: 4, Funny

      You're honest in job interviews? You're insane.

    5. Re:$3500 to get black listed by ever IT corp. by The+Wild+Norseman · · Score: 2

      "What did you do at your last job?"
      "Oh, I saw something clearly wrong and participated in it."

      "Great! You're hired!"

      --
      "A government is a body of people usually -- notably -- ungoverned." -Shepherd Book
  6. sounds surprisingly low by harvey+the+nerd · · Score: 2

    Only 57k total ???? I would expect from one, half decent bust. Sounds like beer money rather than bait. Let's face it, animus, deserved or not, is the big motivator.

  7. Don't be surprised, it's a scam. by eddy · · Score: 5, Informative

    You shouldn't be surprised, because typically these bounties state that you get some percentage of the money collected as damages through a court, but most cases are never reach that state, they're settled out of court. The idea that you can "turn someone in and become rich" is but a dream; in all likelihood you'll never see a dime. You'll just be that guy.

    --
    Belief is the currency of delusion.
  8. Hahahahaha by unity100 · · Score: 2

    In fact, many of SIIA's sources report that their primary reason for leaving the target company was the company's lack of ethical behavior related to software compliance.

    so they say then eh .... rather, they got fired, laid off, or quit/changed jobs and decided to make a quick buck or to take revenge.

  9. Alternatively... by NickFortune · · Score: 4, Insightful

    Of course, there is another plausible scenario:

    Boss: You're fired!

    Ex-Employee: Oh shit!

    Later, at home.

    Ex-Employee: Fire me, will you? We'll see who laughs last...

    dials telephone...

    Ex-Employee: Hello? SIIA? I'd like to report a case of widespread use of unlicensed software by a major company...

    Ex-Employee: Uh... no, no, I'm no longer with the company. I uh, left ... because I was disgusted at their wanton disregard for intellectual property...

    Which isn't to say that some of those reports aren't made by highly principled people, of course. But I bet I know which category had the most hits...

    --
    Don't let THEM immanentize the Eschaton!
  10. Huge reward was that by linuxiac · · Score: 2

    The HUGE reward was that I moved on, while that small company continued to fail, and actually tried to bribe Government investigators, as to their contract qualifications! They cheated 49 staff employees out of pay, intimidated everyone, and stole works from legitimate competitors. Glad they are gone from this classified government contracting arena, they won't be missed. I still wonder if they were on the payroll of foreign governments who are enemies to free countries. Well, my work there was done, and these workers won many awards from the clients, but, all glory and money was stolen from us, by the bosses! Dilbert moment, in real life! Nope, I got no cash reward, nor did the other folks who joined me in turning in this scum to several agencies. Our reward is that evil did NOT win in any way, and we are still a FREE people! Charges were brought, fines were levied, Jail was threatened for the bosses. BTW, I don't give a crap about the proprietary software venue, but, theft is a crime, as is mistreatment of employees, and sooner or later, evil villains will fall. Happy to have stopped their massacre of innocent victims! Often, the theft of Intellectual Property is only the tip of the iceberg! If they don't run FLOSS, I am very wary of working for them! Using only proprietary software, indicates that they are not the right kind of intellect to use all available tools, and can't compete with those who do use Free, Libre, Open Source Software! IOW, I can't tolerate idiots as bosses! I fire them as soon as they answer my question about FLOSS use, during the interview!

  11. I'd say it depends on the situation by Sycraft-fu · · Score: 3, Insightful

    It isn't as though piracy in every company will be the same. So suppose that you work for a company and piracy is widespread, they don't pay for any of their apps. This includes apps by small developers, for who the couple thousand licenses would be a major, major sale. You go and talk to management about it and get told "You'll keep your mouth shut if you know what is good for you."

    In that case, I'd say you are quite justified going to an anti-piracy group, even if they do offer a reward. After all you tried to deal with the problem internally and couldn't, and the company is just ripping off others for their own gain.

    Now on the other hand if you work at a company where most software is licensed. You occasionally find some unlicensed stuff, but it is clearly not the norm or the policy. Things like users installing their own stuff because there are poor IT policies, or a group pirating something they need to do their job because their supervisor is incompetent. Management is clearly unaware of this, and you never bring it to their attention.

    In that case ya I'll call you a money grubbing asshole if you go to an anti-piracy group. After all it is entirely possible that the situation would be rectified if brought to someone's attention and if you don't want to do that for risk of retribution, just let it go, it isn't a big deal.

  12. Re:FIRED. by hairyfeet · · Score: 2

    Good so copying isn't stealing which means I can lock up GPL code in my apps and you're totally cool with that, right? It is just copying some bits, fuck the GPL!

    Oh but you don't like that do you? Well I hate to break the news to ya but whether GPL or proprietary you are STILL ripping someone off.

    And lets be honest MR Coward, your "solutions" suck except for a couple of little niches like web servers. Where is my FOSS QuickBooks? Where is my FOSS PhotoShop? Where is my FOSS version of the 50 million specialized apps, everything from nursing assistants to parts inventory? Oh right they don't exist, because everyone in FOSS seems to think all you need is a desktop and a web browser...riiight.

    So in conclusion MR Coward it isn't some "conspiracy" why FOSS is at 1% and frankly stagnant, it is because you don't give the people what they want and the proprietary companies do. People say they want a CLI free desktop they get told by you "RTFA noob!" while Apple and MSFT are more than happy to take that business. They ask where the apps they require to do their job or the driver the need for their equipment is and get told "write it yourself", meanwhile other companies are happy to write them precisely because they can get paid to do it.

    So please, go right ahead and push illegal software so you can "stick it to the man", I just hope you are ready for the "fun" of a BSAA audit when someone who gets pissed at your little solution decides to cash you in.

    --
    ACs don't waste your time replying, your posts are never seen by me.